INDUSTRY &

COMPETITIVE
LANDSCAPE ANALYSIS
SESSION 1
WHAT IS AN INDUSTRY
INVESTOPEDIA SAYS
• An industry is a group of companies that are related based on their
primary business activities.
• Industry classifications are grouped into larger categories called sectors.
• Companies are classified into an industry based on their largest sources
of revenue.
• For statistical purposes, industries are categorized generally according a
uniform classification code such as Standard Industrial Classification
(SIC)
INDUSTRY CLASSIFICATION
• Industry classification categorize companies into groupings based on
similar production processes, products, or nature of business. 
• Main purpose of Industry Classification is to provide a set of activity
categories that can be utilized for the collection and reporting of
statistics according to such activities
• For India – you can find the information on
- http://mospi.nic.in/classification/national-industrial-classification
BASIS FOR INDUSTRY
CLASSIFICATION
 BLURRING INDUSTRY BOUNDARIES

The fundamental boundaries that have specified the relationships, interactions, and possibilities of most
businesses are rapidly blurring and dissolving
WHY DO INDUSTRY ANALYSIS
• Industry analysis is useful for understanding a firm's economic context
. It helps in
• Assessing the profitability of an industry
• Identifying the strategies that are most likely to be profitable
• Forecasting the likely behaviour of rivals
• Industry analysis provides the context in which strategy is formulated
and includes study of ,
• the underlying forces at work in the industry
• the overall attractiveness of the industry
• the critical factors that determine a company's success within the
industry